Judicial Intervention Ensures Taxpayer Rights: CGST Appeal Procedure Clarified for Pending Tribunal Constitution

The SC addressed the appealability of an order under CGST/OGST Acts due to the non-constitution of the Appellate Tribunal. The court granted the petitioner statutory stay benefits and directed appeal filing once the Tribunal is constituted, while providing guidance on time limits and appeal procedures in the absence of a functional Appellate Tribunal.

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Issues involved:
The issues involved in the judgment are the appealability of an order passed under the Central Goods and Services Tax Act, 2017 (CGST Act) and Odisha Goods and Services Tax Act, 2017 (OGST Act) due to the non-constitution of the Appellate Tribunal as required under section 109 of the said Acts.

Comprehensive details of the judgment for each issue involved:

1. The judgment acknowledges that the order impugned in the writ petition is appealable under Section 112 of the CGST/OGST Act, 2017. However, due to the non-constitution of the Appellate Tribunal as required by law, the petitioner is deprived of its statutory remedy of appeal and the corresponding benefits under subsections 8 & 9 of section 112.

2. In response to the absence of the Appellate Tribunal, the Government of India, based on the recommendation of the GST Council, issued the Central Goods and Services Tax (Ninth Removal of Difficulties) Order, 2019. This order clarifies the calculation of time periods for filing appeals, taking into consideration the date of communication of the order and the date on which the President or State President of the Appellate Tribunal enters office.

3. The Central Board of Indirect Taxes and Customs, GST Policy Wing, further clarified the appeal process in cases where the Appellate Tribunal has not been constituted. It provided guidance on the time limits for filing appeals and suggested that appellate authorities may dispose of pending appeals expeditiously without waiting for the constitution of the Appellate Tribunal.

4. Considering the orders and clarifications mentioned above, the Court decided to dispose of the writ petition by granting the petitioner the statutory benefit of stay, subject to the verification of the deposit of a specified amount. The Court also directed the petitioner to file an appeal under Section 112 of the CGST/OGST Act once the Tribunal is constituted and functional, emphasizing the importance of following statutory requirements for the appeal process.

5. The judgment concluded by granting the petitioner the liberty to proceed with the appeal filing within a specified period upon the constitution of the Tribunal. If the petitioner chooses not to avail this remedy, the respondent authorities are permitted to take further actions in accordance with the law.

This summary provides a detailed overview of the judgment's key points and the Court's decision regarding the issues involved.

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